Despite sector challenges, Accumetal commits to $9.3 million expansion

Local politicians and the Accumetal Manufacturing team gather at its Stratford location to announce a $9.3 million expansion investment.

CONNOR LUCZKA, Local Journalism Initiative Reporter

Despite the challenges that have faced the sector this past year, Stratford Mayor Martin Ritsma says there has never been a better time for manufacturing in the city.

“When I think about manufacturing across Ontario, second quarter we saw a loss of 25,000 jobs in manufacturing,” Ritsma said. “We didn't see that in our area. We didn't see that in Stratford and area. We have the lowest unemployment in Ontario currently, which is a curse at times, but certainly in our last numbers we saw manufacturing leading the way with regards to increased employment.”

Ritsma made those remarks on Feb. 13, during a provincial funding announcement at Accumetal Manufacturing Inc. As the mayor said, the company is just one example of the continued success of the local sector (which makes up about 60 per cent of the city’s economy).

The local metal fabrication company announced a $9,330,438 investment to expand its facilities in Woodstock and Stratford and increase overall manufacturing capacity and capabilities. Through the purchase of advanced equipment, including laser and robotic welding systems, the company will improve productivity, address production bottlenecks and broaden its manufacturing scope. These investments will enable Accumetal to serve new customers and markets, strengthening its long-term competitiveness and resiliency.

Speaking with reporters, Bob Allen, president of Accumetal, said the reason for expansion was simple.

“We’ve had the business,” Allen said. “We needed to expand our facilities so we're able to meet our customers’ demands. Even though they're U.S. based, we're still seeing the business … So we've had to re-invest over the next four years in facilities, equipment, people, personnel in order to meet our customers.”

Despite the ongoing tariff negotiations, the Province of Ontario’s focus on the Ring of Fire and the federal government’s commitment to defence are strong indicators for productive years to come. Additionally, Stratford’s very geography is a factor in its success, being in an advantageous trade laneway.

While tariffs, an unpredictable U.S. administration and a looming renegotiation of the Canadian-U.S.-Mexico free trade agreement complicate those positive factors, both Ritsma and Allen were optimistic about the sector’s future success.

“Being in business is a risk,” Allen said. “We just put our earplugs in and carry on.”

Matthew Rae, MPP for Perth-Wellington, announced $1,399,438 in funding through the Regional Development Program’s Southwestern Ontario Development Fund to assist with Accumetal’s investment, helping to create 41 new good-paying jobs and protect 97 jobs.

“I've been proud to work with Accumetal to secure these investments and strengthen our local manufacturing sector, creating jobs in Stratford,” Rae said at the announcement. “… This is real economic impact, real opportunity and is real confidence in our communities. Manufacturing in Stratford drives opportunity and today's investments ensures that the future continues to grow locally in Stratford and across our region.”

When asked about the city’s success as a whole, Rae said that it comes down to the City of Stratford, investStratford and the Perth County economic development division working to attract and retain employers. Additionally, successful companies like Accumetal aren’t just one supplier for a large company but have a diverse client base.

Ontario is investing over $230 million through its Regional Development Program to help manufacturers across the province grow while supporting distinct regional priorities.

To date, the province has supported more than 180 projects through the program, leveraging more than $2.6 billion in new investments and helping to create over 5,500 jobs.